Ralph Formed a Company as a Fund Manager

question 103

Multiple Choice

Ralph formed a company as a fund manager.He accepted money from his customers, promising to invest it and build cash value for them.Instead, he kept the money for himself to enjoy a lavish lifestyle.The court removed liability protection from his corporate entity because the incorporation had been used to perpetuate fraud.This is an example of:

• A)piercing the corporate veil.
• B)unlimited liability.
• C)reciprocation.
• D)a pre-emptive right.

---

Definitions:

State of Shock

A medical condition characterized by a significant reduction in blood flow throughout the body, which can lead to organ failure and death if not treated promptly.

Fundamental Attribution Error

The tendency to overemphasize personality traits and underestimate situational factors when explaining someone else's behavior.

Internal Dispositions

Enduring personality traits, attitudes, or behaviors that an individual consistently exhibits across different situations.

Situational Determinants

These refer to external factors or environmental conditions that influence an individual's behavior, emotions, and decisions in different contexts.